I learned how to make money flipping cars in my young adult life, and loved it.
Come to think about it, and I don’t even know why I stopped.
I was doing so well with it that I made more than my day job before I fired myself.
Okay, now I remember why I stopped.
I decided to open a bar that failed before it even started.
That was the best/worst decision, but I would’ve never learned how to make money online if I didn’t “fail.”
Those were the days and also a clear reason as to why I veered away from flipping cars.
I knew nothing about running or owning a business, but that’s what I did.
So with that experience, I want to show you how to do the same.
I think it’s great for anyone looking to start some kind of entrepreneurial venture, without having to deal with the crazy risks that come with a full-on business.
It’s a super fun and straightforward process that can be done part-time.
It’s not that complicated, and the income potential is pretty amazing.
How Do You Make Money Flipping Cars?
To make money flipping cars, you need to buy low and sell high.
Find a car that costs a lot less than what it’s worth, and sell it for more to make a profit.
For most, they go out there trying to make deals with others that are selling cars.
Don’t do that.
These guys are out to make money and are already going to be priced well over KBB value.
That’s the basics of it, but I want to show you better ways to go about things.
The idea is not to spend most of your time shopping around, but rather knowing where to find these cars.
It is finding the kinds of cars that are guaranteed to be cheap and the ones that will create the most profit for you.
Before You Get Started
There are several things you need to know and do before you accomplish your first flip.
You need to know where to go, and you need to know how to go about doing things.
If you want to make money flipping cars, it is going to require you to be on it like a hawk.
It’s going to require lots of being in the know and being proactive.
Just like with any business, you are going to need a valid business license.
In most cases, you need a business license if you plan on selling more than 5-10 cars.
It all depends on the laws for that specific state or country, but it’s always best to have a business license anyways.
While we’re on licensing, let’s cover you too.
As a car buyer/salesman, it’s always best if you have a valid driver’s license.
Sure, you can buy a car without a license, but what good is that if you can’t drive it home?
I’m guessing and hoping that you intend to buy and sell more than ten cars a year.
Whatever you decide to do, let me show you how you can make money flipping cars, without overcomplicating things.
When you are in the business of flipping cars, you need to think like a flipper and not like a car salesman.
You are a one-person army that goes about doing business differently, and you definitely will not be buying cars from them.
I’m sure you already know that buying private is ALWAYS better than buying through a dealer.
When you’re just starting, you want to get involved with everything related to buying and selling cars.
Not at dealerships but more on the means of what we utilize today.
Social media, classified ads, and word of mouth are usually my go-to’s.
But the best way to shop is to keep your eye out where ever you go.
You’ll see cars driving around with “For Sale” signs, and you’ll see them parked on the side of the road.
They’re all over the place, and it will require a lot of action on your part.
Call that number and get in contact with the person selling that car.
I don’t care if you see a price that you don’t like, pick up that phone and give them a call.
Most sellers put a price as a starting point but are willing to go a lot lower, especially if they are desperate.
Look For “Steals”
There are buying cars for low and then there’s buying them for dirt cheap.
The latter is how I like to do things and how you should want to do them as well.
I’m not talking about the kind of deal that you can say, “wow, that’s a good deal.”
I’m talking about the kind of deal that you know you can’t let go of.
The kind where you say, “I have the cash right now, and I want this car.”
This is the kind of deal that even the owner knows they’re losing in.
You can tell in most cases, but if you’re new, then it might not be so easy.
Now finding these steals is not going to land on your lap and will require a more aggressive approach.
You will need to get out there and look for these cars yourself.
But think about who would want to sell a car for a price that they’re not willing to accept.
The elderly who know nothing about the value of cars?
Or maybe a woman, who some think knows nothing about cars?
Let me give you a list of the best possible places to buy cars for the lowest possible prices that you know you can walk away with some steals.
If you aren’t familiar with the term lemon lot, that’s because they’re on a military installation.
These lemon lots are where I found the best deals and made the most profits in my early days of flipping cars.
If you have access to any military base, this is one place you need to check out.
Why a lemon lot?
Well, as a person looking to make money flipping cars, you want to go after someone who needs their vehicle sold by the end of the day.
This type of person is in the military, and these cars are on that lemon lot.
These guys and gals are continually moving around that they really could not care less about profiting from selling their car.
And when it’s crunch time, you can bet that they’re willing to take a considerable loss on their asking price.
Lose a couple of thousand dollars, or leave the car and make $0 and probably get in trouble?
They need to go, and they want that car off their hands.
For you, as the flipper, this is also the time when you come in and do precisely that.
You step in like some kind of knight in shining armor when you’re just a car flipper.
Getting a vehicle from someone in the military can easily land you $2k + in profits from just one car.
Imagine what you can make from just three cars a month with that kind of profit?
I’m sure your current job won’t even pay you that much.
Now some of us aren’t that fortunate to live around a military base, and that’s okay.
There are other options.
Thanks to banks and most irresponsible people, cars are getting repossessed and sold through an auction.
It’s not the greatest thing to happen, but it happens every single day.
Whether we like it or not.
Now for you as the person looking to make money flipping cars, this is one heck of an opportunity.
Bank auctions are simple and easy to get more steals.
They sell to the highest bidder, and no one knows what anyone else is bidding.
What we do know is that the people buying from this auction are also looking for a steal.
They aren’t looking to spend the regular price for a car, but rather something that they know they got a good deal.
So if you can’t get to a lemon lot, this is going to be your next best option.
Not the best place to find quality cars, but you can almost guarantee that you will be getting a car for dirt cheap.
Buying cars through a government auction is a thing and one that can allow you to grab some vehicles well below blue book value.
There is one problem with this, though.
The cars on this lot are actual government vehicles.
Sometimes they are well taken care of, but with something from the government, there are no guarantees.
Heck, sometimes some cars have been sitting for decades, that they thought they would fix.
Only 20 years later did they realize that they have junk that needs to go.
And no, I don’t suggest you buy those cars.
Unless it’s like $50, and you can use the part.
However, you are going to be bidding here, and the cars will go to the highest bidder as well.
And just like with the bank’s repo crowd, these guys aren’t looking to pay anything close to what the car is worth.
These are the best places to find awesome deals, so use them if they’re available in your area.
Always Have Cash to Invest
If you want to make money flipping cars, you need to treat it like the business it is.
Unlike starting a home-based business that comes with a small upfront cost, car flipping requires lots of money.
This requirement means that you should always have the dough to scoop up a car when you find it.
Don’t find a steal, and then realize that you’re short $500.
You should always have money to invest, so understand that before you go out there acting like the rich and famous.
Fail to have money all the time and not only will you lose out, but your business will most likely fail.
Don’t Fall For Scams
Scams are all over the place, and they will never stop.
Whether it be online, through email, or right in you
Remember the flooding caused by Hurricane Katrina?
There were so many cars sold on E-bay that went swimming during that flood.
The buyers knew nothing about these cars and purchased them without knowing they were utterly useless.
Always check the history of every vehicle you are going to purchase, even if you aren’t going to keep it for yourself.
I mean, are you willing to sell crappy cars to others?
I hope not, but I will cover more on that later.
You might have seen the little fox from carfax.com, and that’s who you need to visit before you buy ANY used cars.
Don’t Be Too Quick to Sell
Remember that you’re in this business to make money.
Lots of it.
In the world of business and marketing, I live by this one line.
“Don’t let the marketer outsmart the marketer.”
All that means is don’t give in to anyone trying to get you to fall for their selling tactics.
As a car flipper, you are going to come across many people just like yourself, only sleazier.
They will try to buy cars from you without knowing that you’re a flipper yourself.
But they don’t care.
They will try to low-ball you, and sometimes their offers will sound legit.
Don’t fall for them.
Wait for the right time and the right person.
This person is someone looking to buy a car for themselves and not to flip it like you are.
Don’t Get Attached
Making money by flipping cars is a great way to make extra cash and even a living.
But you have to remember what you’re doing so you don’t get sidetracked.
I believe it was my 3rd car that I bought, where I encountered my first attachment issue.
I got a Mercedes Benz C-130 that came with a panoramic roof and broke my rule of not getting attached.
Instead of taking the $5k profit from a buddy that wanted the car, I got it tinted and did some upgrading.
Of course, that was a big mistake, and I ended up only profiting $3k.
I considered it a loss in the books, but a win for lessons learned.
Don’t do what I did, and remember that you are here to make money flipping cars and not to enjoy the ride.
Cars will come and go, and you want to maximize your profit.
Run an Honest Business
It seems that every single person that starts this business end up becoming snakes.
What started as a small, part-time business has grown to a full-blown, I want nothing but money, kind of deal.
It happens to the best, and it can happen to you.
This is also the same reason why I would rather buy a car from a lemon lot than one that needs repairs.
Repairing cars leads to shortcuts and a bunch of unhappy customers.
Your name gets ruined, and what was once an honest business, is now a mess.
The best kinds of cars are those that come with a straightforward fix.
I’ve purchased many vehicles that only needed a dang battery.
Now when it comes to more considerable repairs, let those cars go.
Conclusion – Make Money Flipping Cars
Flipping cars is a great business if you’re willing to put in the work.
Now, if you’re enjoying what you do, then you’re not working.
I am no mechanic, and I’m not even a car enthusiast either.
Put it this way; I would prefer playing with an RC car, over drooling at fancy sportscars online.
Yet, I made over $20k flipping cars within the first month of doing it.
The point is that absolutely anyone can make money flipping cars, even if you are merely interested in starting a home-based business.
It’s easier than most jobs, you are the boss, and you can make more money than anyone you know, with something I consider a hobby.
Besides that, I hope you have learned a thing or two on how to make money flipping cars.
If you have any questions, feel free to leave them in the comments section below.
Don’t forget to like and subscribe, and please do share the wealth if you found this to be helpful.
Thanks for reading and happy flipping!